Why Rent When You Can Buy

Why Rent When You Can Buy

Why Rent If You Can Buy

Home ownership rates are the lowest they have been in the last 50 years. Yet a large portion of Americans are still renting properties, instead of enjoying a home of their own. Consumer reports believe this is an issue because of a buyer's lack of trust in their ability to purchase. It is still a long standing notion that a buyer needs 20% towards the cost of the home in order to move forward, but this isn't true. With countless down payment assistant programs, and closing cost roll-ins, a home owner could move in with as little as a few hundred to a couple thousand dollars. Which is a huge difference in the time it takes to save up to make the move.

With interest rates at an all time low, home ownership in today's market is a great investment. The money saved over a mortgage's lifespan can result in tens of thousands of dollars, if not hundreds. That's more money in your pocket today. Don't wait to buy when interest rates soar again. With low interest rates, that means your monthly mortgage payments are at a significantly lower cost, as well. With such a heated housing marketing, rental prices are soaring, and statistics are constantly showing that home ownership can be equivalent to your rental rate each month, if not less. Why get stuck in a small 2 bedroom apartment, if you can move into a home a pay a monthly rate that is the same, and get a 3 bedroom house with a great backyard?

There is also a fear that a home can keep you "stuck" or "rooted" to one place, without an easy transition out if you decide to move. Although the future of the housing market isn't easily predictable from location to location, you can always discuss with your agent about buying a home in an area that has a strong turn-over rate when a home hits the market. The equity build up when it comes time to selling is going to be far more beneficial, than if you put money into a rental and decided to move. The money from selling the property can be used to purchase a new home. With renting, there would be no additional funds to transition into a new place.

Now imagine if you were renting a home for $2000/month. If your landlord is renting to make a profit, think how much less you'd be paying on a monthly basis towards your mortgage, if the home was yours. Then you wouldn't be paying a landlord to profit off of you, you'd be paying a reasonable rate, and get to call the property your own. Discuss with your agent and lender the steps you need to take towards home ownership, you might be happily surprised about the type of home you can afford to move into.

About Craig Harland

As a Certified Scottsdale Real Estate Specialist who has been a 30 year resident of Scottsdale and North Phoenix, I provide personal service to individuals who are interested in buying or selling homes Scottsdalem North East Phoenix, and surrounding communities.

I have been a Realtor for 10 years with a history of direct involvement in the local real estate industry for over 30 years as well. Prior to entering real estate sales full time, I was co owner of a local Mortgage company for 10 years. Before that I handled real estate construction financing for several Arizona banks. .

Making the best decisions on a real estate purchase or sale requires a team effort. My role is to be my clients’ coach through the process. Directing them to the options that will provide the best path to meet their goals. I helped my clients complete over $4.5 Million Dollars in real estate transactions in 2013. About 40% of these were home Sellers and the rest were purchasing homes. I look forward to hearing your goals and helping you to achieving them.